Purchase goods from kamal on credit Journal entry
Answers
Purchases A/C Dr Rs.xxx
To Kamal A/C Rs.xxx
(being goods purchased from kamal on credit)
3 golden rules
• debit the receiver , credit the giver
• debit what comes in , credit what goes out
• debit all the expenses and losses , credit all the incomes and gains
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reason for debit and credit
Purchase A/c - Nominal A/c , its a expense to the company , therefore its debited
Kamal A/c - personal A/c , hes the giver of goods , therefore its credited
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Journal entry
Purchases A/c DR
To kamal A/c
(being goods purchased on credit )